Bangkok--9 Sep--KASIKORNBANK
KASIKORNBANK aims to sell 5 billion Baht home loans to Secondary Mortgage Corporation (SMC) this year, in an effort to make it easier for new home buyers to access loans. KBank has already been SMC's number-one loan provider for five years, with a total of nearly 15 billion Baht in loans approved.
According to Mr. Predee Daochai, KASIKORNBANK's President, KBank and SMC, a state enterprise under supervision of the Ministry of Finance, have worked together to develop home mortgage loan markets and thus promote home ownership among Thai people. KBank will sell its 2015 housing loan portfolio of 5 billion Baht to SMC. Customers whose accounts are to be transferred to SMC are those who have already stated their intention to join the program when they applied for the loans, and have been carefully screened under the same underwriting processes as all other KBank customers. The perk of joining the program is that they will be offered lower interest rates than those of regular loans, and still be served as KBank customers. Meanwhile, KBank will be able to administer its existing housing loan portfolio in a more effectual manner and be able to reach its annual target of housing loan extension.
Since 2011, KBank and SMC have been partnered in a home loan portfolio program, under which a portfolio of over 9.5 billion Baht in loans has been sold to SMC. Together with this fresh agreement, aggregate loans purchased through this program will approach 15 billion Baht, making KBank the number-one housing loan provider for SMC.
Mr. Predee added that the housing loan portfolio program is a response to government policy aimed at enhancing liquidity within the home loan market, which is expected to benefit the overall economy while also encouraging steady development of Thailand's home loan system. KBank also provides financial advisory services in a securitization process, i.e. issuance of Mortgage-Backed Securities (MBS). This financial innovation increases options for investors by utilizing mortgage as collateral, and accommodates greater access to housing loans among those wishing to own homes in order to make their lives better.
Meanwhile, Ms. Pornnipa Hachaiyaphoom, President of SMC, said that this housing loan portfolio agreement is part of an ongoing program between SMC and KBank to jointly develop and promote stability within Thailand's home loan market. SMC, as a state-owned enterprise, has the primary missions of supporting the housing loan market, developing the capital market and promoting home ownership among Thai people.
At present, home buying has been expanding continuously, which indicates that banks that offer finances recognize the benefit and importance of the secondary mortgage market as a mediator to create activity in the financial system.
Ms. Pornnipa finally added that the portfolios purchased under this program are KBank's borrowers with a positive repayment history. These customers will continue to enjoy the special services and privileges that they have been receiving from KBank. "The program benefits people and helps them gain access to housing loans, as well as creating sustainable economic development," said Ms. Pornnipa.